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That can be the case depending on what the population density looks like and how much of the infrastructure has to be aerial vs. underground. Doing a fully inde
by walrus01 6y ago
That can be the case depending on what the population density looks like and how much of the infrastructure has to be aerial vs. underground. Doing a fully independent overbuild for GPON FTTH to individual houses can have a cost per house of $4000, which results in unacceptably long ROIs for fully private investment. Private investors who fund startup ISPs will go elsewhere.
It can also be complicated and costly as a new-entrant 3rd provider to force the local entities controlling the wood utility poles to permit you to install infrastructure through entire neighborhoods and cities.
- lotsofpulp 6y ago$4k amortized over a few years is very reasonable for a utility every house will buy. The problem is that Comcast already exists and will undercut you with an very inferior product, but the general populace is not educated enough to differentiate fiber vs coax, so Comcast will drop their prices to whatever they have to do the fiber won’t get purchased.
- walrus01 6y agoWhich bring us back to why it works for a PUD or municipality, which has the wherewithal to amortize things like that over 20 years from funding on municipal bonds, and can compel every homeowner in an area to pay for it.